Bitcoin’s price faces potential volatility as it nears a death cross, indicating further declines may follow if key moving averages cross negatively. In contrast, gold continues to thrive as a safe haven, with significant price increases driven by robust demand and international accumulation by central banks, overtaking traditional investments including Bitcoin.
Bitcoin has recently experienced a bounce, reaching $85,630 on April 15, marking a 15.2% increase from its monthly low. This recovery coincided with President Donald Trump’s softened tariff stance, leading to optimism in the stock market, impacting sectors linked with the S&P 500, Dow Jones, and Nasdaq 100, which all saw gains.
Despite this rebound, Bitcoin is at risk of forming a death cross, a bearish indicator where the 50-day moving average falls below the 200-day moving average. Currently, the gap between these averages is just 472 points, indicating a possible crossover. If this occurs, Bitcoin might revisit its monthly low of $74,500, representing a potential decline of 13% from current levels.
Conversely, should Bitcoin break above both moving averages, this would negate the death cross, allowing BTC to potentially surge towards the psychological resistance at $90,000. It’s notable that the S&P 500 has formed a death cross, a historic indicator of further declines, as witnessed in 2022 when it dropped by 17%. The correlation between Bitcoin and equities suggests that a bearish stock market could adversely affect Bitcoin’s value.
In a contrasting trend, gold remains a strong safe-haven asset, surging over 20% to reach a historic price of $3,245 this year. Goldman Sachs has increased its gold price target to $3,700 amidst strong demand from central banks and investors, especially from countries such as India, Turkey, Russia, and China, which have been accumulating gold.
Top gold ETFs like GLD and IAU are experiencing increased inflows from various investors, signalling a preference for gold over American stocks, bonds, and Bitcoin as a safe investment. The Swiss franc has also gained status as a leading safe haven, recently reaching its highest levels in over a decade.
